Freeport LNG Nears Expansion Completion, Set to Boost Output
Freeport LNG believes it can increase production beyond the 15.3 mtpa mark as it completes an expansion project.
“We have safely completed the vast majority of the work related to our debottlenecking project and are working to implement the benefits of those efforts,” a Freeport spokesperson told Reuters.
The spokesperson did not say what the capacity would be when the debottlenecking is complete. However, in the past, Freeport Chairman and CEO Michael Smith said the expansion will bump up export capacity to 16.5 mtpa.
Prior to its debottlenecking Freeport pulled at peak close to 2.2 Bcf/d, according to data from global financial markets analysts at LSEG.
Freeport may slip for the being the second-largest LNG exporting facility before 2024 ends, as Venture Global’s 20 mtpa Plaquemines export facility in Louisiana is expected to begin operations, Reuters said.
NextDecade, Bechtel Finalize EPC Deal for Rio Grande LNG Train 4
NextDecade Corp. has announced that its subsidiary Rio Grande LNG Train 4, has executed a lump sum turnkey engineering, procurement and construction (EPC) contract with Bechtel Energy Inc. for the construction of Train 4 and related infrastructure at the Rio Grande LNG Facility.
Rio Grande LNG Train 4 agreed to pay Bechtel $4.3 billion for the work under the EPC contract for Train 4. Price validity under the contract extends through December 31, 2024. NextDecade currently projects that owner’s costs, and other fees totaling $1.9 billion, based on current estimates and expected interest rates.
Total estimated project costs are expected to be $6 billion for Train 4 and related infrastructure, in line with the per train cost of the three-train Phase 1 at the Rio Grande LNG Facility, which is currently under construction.
NextDecade continues to target a positive Final Investment Decision of Train 4 in the second half of 2024, subject to gaining appropriate commercial support and obtaining adequate financing to construct Train 4 and related infrastructure.
Trace GETS Delaware Basin Gathering, Transportation Assets
Trace Midstream Partners II reached an agreement to acquire LM Energy Delaware LLC’s natural gas gathering and transportation assets in the Northern Delaware Basin, located in Eddy and Lea counties, New Mexico.
This acquisition includes LM Energy’s comprehensive pipeline network, which features high- and low-pressure pipelines, compression, dehydration, condensate handling, and vapor recovery systems.
LM Energy is currently expanding its infrastructure with new compressor stations, pipelines, and a 20-inch high-pressure pipeline connecting to gas processing facilities near Loving, New Mexico.
Once completed, the system will span 170 miles and include 12 compressor stations, with a total capacity of 650 MMcf/d. It covers over 80,000 dedicated acres and benefits from long-term, fixed-fee contracts with multiple producers.
“This acquisition marks a significant milestone for Trace as we enter the Northern Delaware Basin. We are excited to build upon LM Energy’s already well-executed system and track record of success,” Josh Weber, Trace CEO, said.
ONEOK Profit Rises on Strong Rocky Mountain Region Volumes
Pipeline operator ONEOK showed an increase in its second-quarter profit, as it shipped more natural gas and liquids from the Rocky Mountain region.
The U.S. company said its natural gas liquids (NGL) raw feed throughput volumes rose by 12% and natural gas processing volumes increased 10% in the Rocky Mountain region.
The gains in volumes offset lower NGL and natural gas prices. U.S. natural gas prices have plunged about 26% this year amid high storage levels and milder weather.
ONEOK, with access to about half of all U.S. refining capacity, said its total refined product volume shipments rose by 8.9% to 1.54 MMbpd. The company
said core profits grew 19.1% to $635 million for the period, while processing and gas gathering profits increased 18.5%.
“Looking ahead to the remainder of the year, we expect favorable market fundamentals, strong performance across our operations and additional opportunities ahead,” CEO Pierce Norton II told Reuters.
Cheniere Strikes 20-Year LNG Deal with Portugal’s Galp Energia
Cheniere Energy will supply 500,000 tpa of LNG to a subsidiary of Portugal’s Galp Energia for 20 years under a new agreement.
Deliveries are planned to start in the early 2030s, but that hinges of the approval of the Train 8 liquefaction unit for the Sabine Pass Liquefaction Expansion Project.
As part of the deal, Galp will also buy some LNG cargoes from Cheniere before Train 8 is online.
Sabine Pass operates six liquefaction trains, each with a production capacity of 30 mtpa of LNG. An expansion project is underway to add up to 20 mtpa of additional capacity.
‘This SPA is expected to provide further support for the SPL Expansion Project and demonstrates continued momentum as we progress development of the project,’ Cheniere CEO Jack Fusco, said during an earnings call in May. P&GJ